Today, 12/23/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.81% (4.79% in the southeast), down from 4.83% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.15%, down from 4.17% last week. A year ago the 30 year rate was 5.05%.
After climbing for 5 straight weeks, interest rates dropped slightly this week. Maybe things are moderating a bit. Hope so. Freddie Mac said that recent ecomonic indicators were pointing toward an improving economy. Industrial production, consumer spending, and exports all showed gains in recent weeks. That is good news.
Freddie Mac's spokesperson also said, “Rates remain low, however, despite the recent rise, and are still well below where they began the year. Low mortgage rates are an important factor in housing affordability, which in October was the highest on record, according to the National Association of Realtors®. These conditions are conducive to improving housing market conditions, and indeed, sales of existing single-family homes rose 6.7 percent in November to the strongest pace since June, according to the Realtors. In addition, the median sales price rose 1.2 percent over November 2009, which represented the first 12-month increase since August and largest gain since April. Finally, new construction on one-family homes in November rose to the strongest rate since April, based on figures released by the Census Bureau."
Things continue to heat up here as more and more winter visitors arrive. We expect a big wave of them to get here after Christmas and New Year's Day. Many of these "snowbirds" will be looking for winter retreats. So we look for real estate activity in that market to get very busy in the coming months!
Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.
If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.
If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida